THE Kuvimba Mining House has declared a 5.2 million United States dollar divided just 12 months after taking over several dormant mining companies.
Less than a year after the resources group took over struggling and dormant mining firms, the Kuvimba Mining House in which Government has a 35 percent stake, has declared a hefty 5,2 million United States dollar dividend in yet another milestone in the mining sector.
Kuvimba Mining House Chief Executive Officer, Mr David Brown illustrated how their investment has transformed three gold mines culminating in this dividend payout.
“Freda Rebecca Mine has surpassed its monthly target in history since we took over, Jena was dormant and not hopeful of operation but we resuscitated it to full production whilst Shamwa is poised to become the biggest gold producer in the country,” he said.
Kuvimba Mining House has a diverse shareholding structure comprising disadvantaged groups and citizens through different arms of Government, who also received their dividend checks, a direct benefit from their God given natural resources.
“IPEC holds a stake in Kuvimba through shares and the dividend will go towards settling the legacy pension debts emanating from exchange rate losses caused by the currency reforms of 2019,” said Dr Grace Muradzikwa, Chair for the Insurance and Pensions Commission.
“Our dividends are going to ensure that the depositors who lost their money through failed banks are compensated through our stake in the company,” said Mr Vusi Vuma, Deposit Protection Corporation, Chief Executive Officer.
“Women and youths are the biggest beneficiaries of this milestone dividend declaration through recapitalising the National Venture Capital Fund and the Zimbabwe Women Microfinance Bank,” said Dr Mandas Marikanda, Managing Director, National Venture Capital Fund
The declaration of dividends by Kuvimba Mining House is clear evidence that private public partnerships are bearing fruit and the envisaged 12 billion United States dollar mining target in two years time is not symbolic but will directly transform lives and the economy at large.
Following the dividend declaration, observers say Zimbabwe’s US$12 billion mining economy target is within reach with most firms in the sector raising production levels.
This comes after a local mining group declared massive dividends within its first 12 months.
Mining has been listed among the key drivers of an upper middle income economy by 2030 as it presents opportunities for overall socio economic development of the country.
University of Zimbabwe Mining, Chemical and Metallurgical Engineering Department Chairperson, Mr Tinashe Ndoro believes vast projects in the mining sector will positively transform the economic well-being of Zimbabweans.
“There is a lot to tap and derive such that it is only an issue of how the resources can translate to improved living standards,” he said.
Chairperson of the Parliamentary Portfolio Committee on Mining and Mining Development, Honourable Edmond Mkratigwa also explains how the mining sector is key to the achievement of National Development Strategy One and Vision 2030.
“There is a lot to do such that all the relevant initiatives to foster growth are attained in the long term,” he said.
Treasury has also revealed that the mining sector will positively contribute to the 7.4 percent economic growth target this year.